ESP – USA Corporate Debt Issuance On Pace for Record Year, David Giordano
Excellent discussion on U.S. corporate debt by David Giodano, Director Fixed Income, S&P Dow Jones Indices, “U.S. corporations continue to take advantage of the accommodative conditions created by a protracted period of low interest rates and strong market participant demand. As of Oct. 1, 2017, U.S. investment-grade corporate debt issuance surpassed USD 1 trillion—three weeks ahead of 2016’s pace. Additionally, the amount of speculative-grade corporate debt issued through the first three quarters of 2017 is 17% higher than it was after the first three quarters of 2016. Combined, U.S. corporate issuance is on pace for another record year, which would mark the sixth consecutive year of increased corporate debt issuance.”
Update Economic USA Consumer Credit
Consumer credit took a short pause and is now showing renewed expansion without undue stress in servicing debt. Three of the credit default measures are at the same level as two years ago and the third is continuing to improve while credit expands. Credit quality is reasonable at these levels.
Stock Fair Value Change Report
Mylan N.V. and Public Service Enterprise receive increases in fair value (Fv) while AT&T moved down as it faces difficulties with a Direct TV integration.
Update Economic USA Inflation PPI
The Federal Reserve is anxious to see some level of inflationary pressure, but unfortunately for Chairman Yellen, this does not appear to be on the horizon. Producer prices as measured by the PPI remains contained at 2.6% year-over-year (YOY), short of placing any upward pressure on the Consumer Price Index (CPI). Generally, increases in the Consumer Price Index (CPI) occur shortly after inflationary signs appear in the PPI.
Stock Fair Value Change Report
Meta Financial Group receives an increase due to increased revenues and earnings.